Encore Entrepreneurship: Starting a Small Business or Franchise in the Golden Years

According to the Small Business Association (SBA), one of the fasting growing groups of small business owners is actually “encore entrepreneurs”, that is, people over the age of 50 who are starting their own businesses. In fact, a recent Gallup Poll Survey indicated this group is TWICE as likely as millennials to plan to start a business. The majority of these individuals are combining the experience and skills they have acquired during decades of employment to create small businesses that can be profitable both financially and personally.

Some of the varied reasons for pursuing entrepreneurship at this stage include:

Tired of a corporate job and wants to pursue something they’ve always dreamed of
Don’t want to sit idle in retirement
Lost a job and starting a business is their best option for financial stability
Are ready for their ‘Second Act’ (or Third!) where they can pursue a hobby or passion
Want to take their future in their own hands and be their own boss
Have endured several rounds of layoffs, and doesn’t want to live anymore in the fear they could be ‘next’
Want to increase their income and build their retirement savings until they are actually ready to retire

As you can see, there are plenty of reasons why this might be a good idea for the baby boomers of the world. However, as with anything, it doesn’t come without challenges. The Gallup Survey indicated one of the biggest challenges is acquiring funding. One option some franchisees might not be aware of is the ability to use their retirement funds to start a business. Called Rollover for Business Startup (ROBS) or 401(k)/IRA Rollover Funding, this method of funding allows individuals to use 401(k), IRA, 403(b), or other qualified retirement accounts to fund a business – with no penalties, upfront taxes, or debt.

Since the retirement funds are rolled into a newly created retirement or profit-sharing plan, there is plenty of opportunity to build wealth, provided you choose the right partner that can help you do so. The major benefit is you can retire on your terms – when you are ready mentally and financially.

Benetrends is the authority in franchise funding, acclaimed for its Rainmaker Plan which enables entrepreneurs to use their retirement plan to purchase a business, tax deferred and penalty free. Benetrends has an industry-high approval rating in SBA Loans and offers a full suite of business solutions including funding, commercial insurance, health insurance, payroll and more. Visit http://franchise.org/benetrends-financial-supplier to learn more about Benetrends and your franchise funding options.